John McGuinness (Carlow-Kilkenny, Fianna Fail)
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604. To ask the Minister for Public Expenditure and Reform if he is aware the multi-supplier framework agreement for the provision of pest control services excludes by its conditions a large number of small firms and persons from the process as they do not have the turnover required although they already supply Departments and Government agencies; that jobs could be lost as a consequence of this process and that value for money and a quality service may not be achieved; if he is aware of the growing concern in the small and medium enterprise sector relative to the restrictions in the Government procurement process; if he will address these concerns; and if he will make a statement on the matter. [10412/16]

Paschal Donohoe (Dublin Central, Fine Gael)
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The OGP is fully aware of the significant role that SMEs play in the Irish economy and is strongly committed to ensuring that SMEs are fully engaged with Public Sector procurement and the opportunities presenting.  In that context, the OGP has established the high-level Group on SME Access in conjunction with the Department of Jobs, Enterprise and Innovation, Enterprise Ireland and InterTrade Ireland. The group is chaired by Mr. Paul Quinn, Chief Procurement Officer, and is focused on monitoring the delivery of the procurement commitments under the Action Plan for Jobs and to develop further strategies to improve SME access to procurement.  In addition, the OGP Policy Director chairs the SME Working Group which brings together the Department of Jobs, Enterprise and Innovation, Enterprise Ireland, the Competition Authority and InterTrade Ireland with industry representative bodies including IBEC, the Small Firms Association, CIF, Chambers Ireland and ISME. 

Circular 10/14: "Initiatives to assist SME's in Public Procurement" (April 2014) issued new guidance and procedures to public procurers regarding SME access to procurement opportunities. The purpose of the new guidelines and procedures are to ensure that engaging with government procurement is easy and low cost. In line with the objectives of Circular 10/14, the lots were designed to facilitate the participation of SMEs.  The National Framework Agreement was structured into 9 geographic lots - this lotting structure was designed to deliver efficiency, value for money, reduce duplication and mitigate any undue risks on the State, whilst still supporting SME participation.  The Lotting structure was very much informed by engagement with the Irish Pest Control Association and a number of service providers. The OGP utilised the IPCA website to determine the location of service provides to ensure there were sufficient places on the Lots to allow SMEs to be successful.  For instance in the case of the Dublin Lot (Lot 8), 8 places were available due to the large presence of SMEs. Five companies were appointed to the National Framework Agreement and, four of the companies are SMEs based in Dublin and Limerick.

Collaborative consortia bids were encouraged by the OGP thereby further facilitating SMEs' participation.  SMEs that believe that the scope of a competition is beyond their technical or business capacity are encouraged to explore the possibility of forming relationships with other SMEs or large enterprises.  Through such relationships, SMEs can participate and contribute to the successful implementation of any contracts, agreements or arrangements that result from procurement competitions and therefore increase their social and economic benefits.  Intertrade Ireland have a specific training programme available to support businesses interested in putting consortia together.  In addition, the Competition and Consumer Protection Commission published a guide for SMEs, 'How to comply with competition law when tendering as part of a consortium', in December 2014. The published RFT permitted both the use of subcontractors and the establishment of consortia.  Unfortunately neither of these options were presented in the responses received by the OGP to its published RFT. 

It may be worth noting that of the 35 members of the IPCA, our eTenders records show that only 9 members downloaded the tender document 7 of whom tendered, 4 of whom were appointed to the Framework.

Under Circular 10/14 buyers are encouraged not to set turnover thresholds at more than twice the estimated contract value.  I wish to confirm that no multiplier was used in the establishment of the turnover figures for any Lots advertised under this competition.  As was noted in the tender documentation, an annual value was approximated therein, these were the turnover levels set out in the RFT.

The OGP also wishes to confirm that no queries or clarifications were raised by tenderers during the tender process in relation to the matters raised.  Furthermore it is noted that the Tender Advisory Service (TAS) was not availed of in relation to any concerns which the market may have had.

The OGP is satisfied that its tender process was robust and not only did the OGP act in the spirit of Circular 10/14, it actively applied its principles by making every effort to allow participation by all potential tenderers, whilst being mindful of the Office's core business of delivering value for the taxpayer.

The OGP is now meeting the demands of its customers, and have achieved significant value for money in relation to this exercise.  This outcome has demonstrated SME ability to compete and be successful in public procurement processes.